I bit the bullet and clicked continue. It restored my pod and installed 2.0 in about 10 minutes. The latest backup put back my notes and calendar data. I had to recheck the playlists that I have iTunes manage for me and the songs are going back on now. All appears to be well.

I got an error about a file missing and could not restore from back up.
I clicked through it and chose to set up as new.
I am having a problem no in that none of the apps from the app store will run. I click on them , they open then close. ??

MacRumors attracts a broad audience
of both consumers and professionals interested in
the latest technologies and products. We also boast an active community focused on
purchasing decisions and technical aspects of the iPhone, iPod, iPad, and Mac platforms.